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Presentation on types of bank accounts By: Sobiya Khan

Recurring Deposit a/c Fixed Deposit a/c Current a/c Saving Bank a/c Index Recurring Deposit a/c Fixed Deposit a/c Current a/c Saving Bank a/c

Recurring Deposit a/c These are popularly known as RD a/c Suitable for people who wish to save a small amount every month.  Interest is charged based on the amount already. The person has to usually deposit a fixed amount of money every month.

Continued… Recurring Deposit accounts are normally allowed for maturities ranging from 6 months  to 120 months. A Pass book is usually  issued  wherein  the person can get the entries for all the deposits made by him / her and the interest earned.

Fixed Deposit a/c All Banks in India offer fixed deposits schemes with a wide range of tenures for periods from 7 days to 10 years.  These are also popularly known as FD accounts.    The depositors are supposed to continue such Fixed Deposits for the length of time for which the depositor decides to keep the money with the bank.

Continued…  In case of need, the depositor can ask for closing the fixed deposit prematurely by paying a penalty. The rate of interest for Fixed Deposits differs  from bank to bank.  Interest payable on Fixed Deposit can also be easily transferred on due dates to Savings Bank or Current Account of the customer.

Current a/c Current Accounts are basically meant for businessmen and are never used for the purpose of investment or savings.  These deposits are the most liquid deposits and there are no limits for number of transactions or the amount of transactions in a day.  The current account are opened in the names of firm/company accounts.  No interest is paid by banks  on these accounts. 

Continued… Cheque book facility is provided and the account holder can deposit all types of the cheques and drafts in their name or endorsed in their favour by third parties.  Banks charges certain service charges, on such accounts.    The current accounts do not have any fixed maturity as these are on continuous basis accounts  

Saving Bank a/c The 'saving account' is generally opened in bank by salaried persons or by the persons who have a fixed regular income.  Saving a/c are opened to encourage the people to save money and collect their savings. These accounts not only provide cheque facility but also have  lot of flexibility for deposits and withdrawal of funds from the account. The saving account holder is allowed to withdraw money from the account two times or three times in a week.

Continued… The interest rates varies as per amount of money deposited and its maturity range. Till 24/10/2011, the interest on Saving Bank Accounts was regulated by RBI and it was fixed at 4.00% on daily balance basis. RBI has deregulated Saving Fund account interest rates and now banks are free to decide the same within certain conditions imposed by RBI. 

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